Hedge Accounting for Exposures (E-HA)
With Hedge Accounting for Exposures
(E-HA), you can manage hedging relationships with which you document how you use financial instruments to hedge your risk positions (exposures) against foreign exchange risks, interest rate risks, and commodity price risks.
With E-HA, you can portray fair value hedges (FVH) and cash flow hedges (CFH) including net investment hedges (NIH) for foreign subsidiaries.
E-HA enables you to run effectiveness checks for your hedging relationships and document your hedging relationships. It also offers valuation and accounting functions for Hedge Accounting purposes.

In Customizing for the Transaction Manager, you need to make the settings for Hedge Accounting for Exposures under .
You can manage your exposures in Exposure Management 1.0
and in Exposure Management 2.0
. Both Exposure Management applications are integrated with Hedge Accounting for Exposures
.
Further, you can import exposures from Money Market and Loans Management or exposures from external systems into E-HA. Of course, you can also create exposures manually in the hedge plan.
See also:
To calculate the market values of a derivative financial instrument, Hedge Accounting for Exposures
uses Mark-to-Market Valuation
(storage of mark-to-market valuation transactions) in Risk Management.
There is a connection to Market Data Supply
. This is important for subsequent effectiveness checks.
Key Date Valuation
(valuation for accounting purposes, performed on transactions against the market value) reads saved NPVs from mark-to-market valuation. Unrealized gains and losses are distributed to accounts on the basis of Hedge Accounting principles.
With the key date valuation and the realized gains and losses, integration to Financial Accounting is automatic.
